201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti California Market Report, March 2024
The jet stream moved further south in February, bringing steady rainfall to Coastal California and also some precipitation to Lodi and the Interior. Significant snow fell at higher elevations: State-wide snowpack levels rose from 50% of normal as of January 31st to 104% by March 4th. This spring has started similar to last year’s, although not as wet or as late to the same extent. Also in common with last year, some growers have struggled to get into their vineyards to prune.
Budbreak is now underway. Temperatures have not dropped low enough for frost to become an issue – in any case, moisture levels have been a defence. The frost risk window will remain open until around the start of May, and some growers may be holding off from pruning until then; others will be assessing whether or not they should prune at all if their vines remain uncontacted. Viticultural climatologist Gregory V. Jones forecasts a continuation of the southerly jet stream through March, making above-average precipitation likely, while other meteorologists are confident California will be free of widespread drought in 2024 and 2025.
As expected, mid-February’s publication of the California Department of Food & Agriculture’s preliminary 2023 grape crush report failed to stimulate any discernible change on the grape and bulk wine markets. It showed 3.668 million tons of grapes crushed, revised upward slightly to 3.685 million tons in the final report released March 8th, in line with our estimate. We suspect the crop was larger than what crossed the scales – a lot of fruit was left hanging or dumped on the ground – yet the volume that eventually came in was probably still in excess of market need. That said, the bulk market has been more active in recent weeks versus January, with inquiries into – and some transactions on – a range of wines from a range of areas. Requests continue to be mainly for small volumes.
Some further observations on the crush report: The 8.5% increase in the average tonnage price versus the prior year likely reflects the fact a spot market for 2023 grapes never really developed, so that longstanding contracts – many with annual upticks built into them – skewed the figure. Should current market dynamics persist, more grapes will come out of contract with every year that passes, eventually leading to a downward trend in the average tonnage price. We believe the Central Valley experienced its fifth-consecutive smaller crop, and declining output in the southern Interior is likely to continue as slim margins incentivize pull-outs. Relatively recent plantings of high-efficiency Cabernet and Sauvignon Blanc in Lodi should maintain northern Interior crop sizes for a little while yet. Zinfandel output was significantly down in 2023 – by 26.2% – owing to a high level of rejections and potentially also some pull-outs: That there was no reaction on Zinfandel’s bulk market highlights the lack of demand pressure on that varietal.
Read on for a detailed assessment of the bulk wine and grape markets and – for the most up-to-the-minute information – get in touch with Ciatti directly. The broker team stands ready to draw on its decades of experience to help navigate buyers and sellers alike through the present challenges, and beyond.
About
With 8 offices world wide, Ciatti serves our clients with the most up-to-date and accurate market information available. Please contact us with any questions. We are truly at your service.
Greg Livengood
President, Partner and Broker
Greg joined Ciatti in 1994 and became a partner in 1997. Greg has used his degree in International Relations to build Ciatti into the world recognized leader in the alcohol beverage business. Greg is currently the President and CEO of the company and drives the international group.
Email:greg@ciatti.com
Steve Dorfman
Partner and Broker
Steve Dorfman joined Ciatti in 2007 after working with the Brown-Forman Corporation, Fetzer Vineyards, Sonoma-Cutrer Vineyards and Bolla Wine brands for 24 years. His primary responsibilities are wine and grape sales within California, and the supply demands of markets throughout Europe, South Africa and Australia.
Email:steve@ciatti.com
John Ciatti
John White
Partner and Broker
Ciatti has a long history of seeking to provide clients with a well rounded team of brokers whose experience in the industry cover the breadth of the business. John joined the company in 2003 after working as a Winemaker for several of California's major producers for 20 years. John's emphasis is maintaining relationships with California wineries ranging from the largest to the smallest. John has focused on all aspects of growth within the business, from long-term custom crush contracts to spot bulk wine and grape sales. His speciatly is the sourcing and selling of premium varietal lots from the coastal and interior regions of California.
Email:johnw@ciatti.com
Chris Welch
Partner and Broker
Chris Welch joined Ciatti in 1994, and began brokering bulk wine and grapes in 2003 and became a partner in company in 2007. The premium and super premium segment of the California wine industry are the breeding grounds of innovation and where Chris truly excels. His consistent approach helps small and medium size wineries and negotiants achieve the innovation and growth they seek. Chris also works very closely with the Oregon Wine Industry.
Email:chris@ciatti.com
Glenn Proctor
Partner and Broker
Glenn Proctor joined Ciatti in 2003 and became a partner in 2007. Glenn advises wineries on supply positioning and works closely with growers and wineries in marketing their grapes and wine. He specializes in spot and contract bulk wine and grapes sales from all regions of California. He has over 23 years of experience in wine supply strategy, wine-grape quality improvement, brand strategy, and business development. Glenn was previously the Vice President of Winegrowing for Diageo Chateau and Estate Wines, and before that was a Director at Benziger/Glen Ellen Winery during its rapid growth in the early 1990's.
Email:glenn@ciatti.com
Broker
Johnny Leonardo joined Ciatti in 2004 as a broker and knows that surviving in a dynamic wine industry requires one to be a Jack-of-all-Trades. He has experience in all aspects of winery and vineyard operation, from the field to the street. Johnny has developed and managed vineyards, and worked in wine sales and marketing.
Email:johnny@ciatti.com
Andy Bivona
Broker
Andy joined Ciatti as a broker in 1996. His areas of expertise and responsibility include grape and fruit concentrates, beverage and industrial alcohol, fruit alcohol and brandy, and food specialty products. Andy's knowledge of these products has allowed him to branch out and work throughout various parts of the world including Mexico, South America and Europe. Andy remains a wealth of knowledge and offers a creative approach to all endeavors.
Email:abivona@hvc.rr.com
Todd Azevedo
Broker
Todd Azevedo joined Ciatti in 2004 after completing his Agricultural Finance degree from Cal Poly San Luis Obispo. Although Todd brokers wine, grapes, and wine products throughout the state of California, Todd's focus is on the California Central Coast.
Email:todd@ciatti.com
Mark Ishimaru
Customer Account Representative - North America
Joined Ciatti in 2011.
Email: mark@ciatti.com
Molly Richardson
Customer Account Representation - Grower Accounts
Joined Ciatti in 2016
Email: Molly@ciatti.com
Administrative/Accounting Assistant
Joined Ciatti in 2000.
Email:alette@ciatti.com
Michael FungCustomer Account Representative - Sample Room
Joined Ciatti in 2013.
Email: michael@ciatti.com
Contact
Contact List
| Title | Name | Phone | Extension | |
|---|---|---|---|---|
| Partner/Broker | John Ciatti | john@ciatti.com | 4152640762 | |
| Partner/Broker | Steve Dorfman | steve@ciatti.com | 7073213843 | |
| Partner/Broker | Greg Livengood | greg@ciatti.com | 4154975032 | |
| Partner/Broker | Glenn Proctor | glenn@ciatti.com | 7073370609 | |
| Partner/Broker | Chris Welch | chris@ciatti.com | 4152988316 | |
| Partner/Broker | John White | johnw@ciatti.com | 4152500685 | |
| Broker | Todd Azevedo | todd@ciatti.com | 4152656943 | |
| Broker | Johnny Leonardo | johnny@ciatti.com | 4157174438 | |
| Broker | Dennis Schrapp | dennis@ciatticanada.com | 9059338855 |
Location List
| Locations | Address | State | Country | Zip Code |
|---|---|---|---|---|
| CIATTI Global Wine & Grape Brokers | 201 Alameda Del Prado, #101, Novato | CA | United States of America | 94949 |
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